US budget deficit approaches $2 trillion

According to data from the US Treasury Department, the deficit increased from $1.78 trillion in fiscal year 2025, marking its highest level since the $2.77 trillion shortfall recorded in 2021. Federal government revenues increased 3% to $5.4 trillion during the fiscal year, while expenditures climbed 6% to $7.4 trillion.

Rising borrowing costs and declining customs tariff revenues contributed to the widening budget deficit. The federal government's gross interest payments increased from $1.22 trillion to $1.36 trillion, while net interest expenses exceeded $1 trillion. Net customs tariff revenues fell from $194.9 billion to $173.2 billion. In September, the federal budget recorded a $27 billion deficit, compared with a $198 billion surplus in the same month last year.